Trading Symbol: NWX (TSX-V)
VANCOUVER, BC, Dec. 11,
2020 /CNW/ - Newport Exploration Ltd ("Newport" or "the Company")
is pleased to announce the payment of its fourth quarterly cash
dividend ("the Dividend") in 2020 of $0.03 per share to its shareholders of record at
the close of business on November 26,
2020. As previously disclosed, the Company proposes to
continue with the payment of quarterly dividend distributions, with
the next payment scheduled for March, 2021.
Annual Dividend and 2020 Share Price Performance
The $0.01/share dividend paid in
September 2020 and the $0.03/share dividend paid today will be recorded
in the Financial Year ended July 31,
2021, along with further dividends to be paid in early 2021.
The Company's ability to return cash to shareholders is attributed
to the recurring free cash flow generated by its Gross Overriding
Royalty ("GOR") from licences in the Cooper Basin, Australia, operated by Beach Energy Ltd
("Beach").
Newport's dividend payout
ratio, being the cash dividend per share of common stock divided by
the earnings per share of common stock, compares favorably with
that of other yield stocks, particularly those in the energy
sector. Since 2015 the Company has paid an average Annual Yield of
21%.
With Beach's exploration success, reported oil reserves and low
production costs, Management is confident that shareholders of the
Company should continue to be rewarded with dividend
continuity.
With respect to the Company's share price performance,
Newport has been able to regain
the lost ground from the March 2020
low and since mid-November has been trading at prices above the
2020 opening value, and at 6-year highs.
Investors are cautioned that historical results are no guarantee
of future performance.
M&A activity has increased in 2020 as many companies facing
liquidity pressures become forced sellers of assets. Management
continues to evaluate opportunities that arise and are confident
that if necessary, funds could be raised through equity financing,
and most importantly for shareholders, without affecting the
current dividend policy.
About Newport
Newport holds a 2.5% GOR on
several oil and gas licences and permits in the Cooper Basin in
Australia. These licences and
permits are currently being operated and explored by Beach and
Santos Ltd ("Santos"), both major Australian oil and gas
producers.
The Company receives its GOR from Beach which is not a reporting
issuer in Canada, therefore
Newport is not able to confirm if
the disclosure satisfies the requirements of NI 51-101 - Standards
of Disclosure for Oil and Gas Activities, or other requirements of
Canadian securities legislation.
The Company recommends that shareholders and potential investors
access material information relevant to the Company as released
independently by Beach and Santos in order to keep current during
exploration, development and potential production of all the
licences subject to the Company's GOR.
The Company currently has 105,579,874 common shares issued and
outstanding and $5.8 million in the
Treasury (comprised of cash, cash equivalents and short-term
investments), and no debt.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the accuracy or
adequacy of this news release.
Cautionary Statement on Forward-Looking Information
This news release is intended to provide readers with a
reasonable basis for assessing the future performance of the
Company. The words "believe", "should", "could", "expect",
"anticipate", "contemplate", "target", "plan", "intends",
"continue", "budget", "estimate", "may", "will", "schedule" and
similar expressions identify forward-looking statements.
Forward-looking statements may pertain to assumptions regarding the
price of oil and fluctuations in currency markets (specifically the
Australian dollar) and future dividend payments. Forward-looking
statements are based upon a number of estimates and assumptions
that, which are considered reasonable by the Company, are
inherently subject to business, economic and competitive
uncertainties and contingencies. Factors include, but are not
limited to, the risk of fluctuations in the assumed prices of oil,
the risk of changes in government legislation including the risk of
obtaining necessary licences and permits, taxation, controls,
regulations and political or economic developments in Canada, Australia or other countries in which the
Company carries or may carry on business in the future, risks
associated with developmental activities, the speculative nature of
exploration and development, and assumed quantities or grades of
reserves. Readers are cautioned that forward-looking statements are
not guarantees of future performance. There can be no assurance
that such statements will prove to be accurate and actual results
and future events could differ materially from those acknowledged
in such statements.
The Company disclaims any intention or obligation to update or
revise any forward-looking statements whether as a result of new
information, future events or otherwise, except to the extent
required by applicable laws.
SOURCE Newport Exploration Ltd.